1. Organizational Behavior BBA & MBA
Lecture
Motivation: From Concepts
to Application
Course Lecturer: Farhan Mir

2. After studying this chapter, you should be able to:
Describe the way in which employees can be motivated by changing their work environment.
Compare and contrast the three main ways jobs can be redesigned.
Give examples of employee involvement measures and how they can motivate employees.
Describe the four major strategic rewards decisions.
Demonstrate how the different types of variable-pay programs can increase employee motivation.
Describe how the application of motivation theories varies across cultures.

3. Motivating by Changing the Work Environment: JCM
The Job Characteristics Model - jobs are described in terms of five core dimensions:
Skill variety
Task identity
Task significance
Autonomy
Feedback

4. The Job Characteristics Model

5. JCM: Designing Motivational Jobs
JCM-designed jobs give internal rewards
Individual’s growth needs are moderating factors
Motivating jobs must be:
Autonomous
Provide feedback, and
Have at least one of the three meaningfulness factors

6. How Can Jobs be Redesigned?
Job Rotation
The periodic shifting of an employee from one task to another
Job Enlargement
Increasing the number and variety of tasks
Job Enrichment
Increasing the degree to which the worker controls the planning, execution and evaluation of the work

7. Guidelines for Enriching a Job Using JCM
Enrichment reduces turnover and absenteeism while increasing satisfaction.

8. Alternate Work Arrangements
Flextime
Some discretion over when worker starts and leaves
Job Sharing
Two or more individuals split a traditional job
Telecommuting
Work remotely at least two days per week

11. What is a Teleworker?
An employee who works remotely, usually from their home, facilitated by collaborative information and communication technologies
Also known as: “telecommuter”, “mobile worker”, “virtual worker”, “remote worker”
The daily commute to a central place of work is replaced by technology links
Can range from a few hours a week to full time
May work from a home office, a co-working facility, or in many locations for jobs such as sales and service
Key points
Teleworkers work for employers of large, medium and small sized companies
Teleworkers work from different environments including the main office, a mobile office or a home office
Teleworking is possible more than ever today through the broad deployment of technology
Teleworkers typically purchase products like ours from an internal on-line purchasing site (after the product has been tested and approved) or from retailers or etailers. In the latter case, the employee is usually reimbursed by the company. Example: 25% of Calisto customers who have returned reg cards so far
Source: AeA, “Telework in the information Age”, April 2008

12. Keys for Successful Telecommuting
Identify jobs best suited to distance work.
Select responsible employees.
Establish employee feedback procedures and performance review methods for evaluation.
Establish formalized telecommuting procedures.
Begin a formal training program.
Keep telecommuters informed and “in the loop.”
Recognize when telecommuting isn’t working.

13. The Way People Work is Changing
A brief look at the Teleworking Opportunity

14. Before

15. After

16. “Best Companies” Support Teleworking!
Telecommuting & Top U.S. Companies:
84 of the 100 “Best Companies” allow employees to telecommute or work at home
These 10 have the highest percentage of telecommuters
Company Best companies rank % of "regular" telecommuters
Cisco Systems* %
eBay %
Booz Allen Hamilton %
S.C. Johnson & Son %
American Fidelity Assurance %
Shared Technologies %
Principal Financial Group %
Goldman Sachs %
Yahoo %
Qualcomm %
* Estimate: Cisco doesn't formally track this data.
Source: “100 Best Companies to Work For”, Fortune Magazine, Feb 2008

18. If Not Now – When?

19. Employee Involvement
A participative process that uses the input of employees to increase their commitment to the organization’s success Two types: Participative Management Representative Participation

20. Participative Management
Subordinates share a significant degree of decision-making power with superiors
Required conditions:
Issues must be relevant
Employees must be competent and knowledgeable
All parties must act in good faith
Only a modest influence on productivity, motivation, and job satisfaction

21. Representative Participation
Workers are represented by a small group of employees who participate in decisions affecting personnel
Works Councils
Board membership
Desires to redistribute power within an organization
Does not appear to be very motivational

22. Major strategic rewards decisions:
Rewarding Employees
Major strategic rewards decisions:
What to pay employees
How to pay individual employees
What benefits to offer
How to construct employee recognition programs

23. 1. What to Pay Need to establish a pay structure Balance between:
Internal equity – the worth of the job to the organization
External equity – the external competitiveness of an organization’s pay relative to pay elsewhere in its industry
A strategic decision with trade-offs

24. 2. How to Pay: Variable-Pay Programs
Bases a portion of the pay on a given measure of performance
Piece-Rate Pay – workers are paid a fixed sum for each unit of production completed
Merit-Based Pay – pay is based on individual performance appraisal ratings
Bonuses – rewards employees for recent performance
Skill-Based Pay – pay is based on skills acquired instead of job title or rank – doesn’t address the level of performance

26. More Variable Pay Programs
Profit-Sharing Plans – organization-wide programs that distribute compensation based on an established formula designed around profitability
Gainsharing – compensation based on sharing of gains from improved productivity
Employee Stock Ownership Plans (ESOPs) – plans in which employees acquire stock, often at below-market prices
While it appears that pay does increase productivity, it seems that not everyone responds positively to variable-pay plans.

27. 3. What Benefit to Offer: Flexible Benefits
Each employee creates a benefit package tailored to their own needs and situation
Modular plans – predesigned packages to meet the needs of a specific group
Core-plus plans – core of essential benefits and menu of options to choose from
Flexible spending plans – full choice from menu of options

28. 4. How to Recognize Them: Employee Recognition Programs
In addition to pay there are intrinsic rewards
Can be as simple as a spontaneous comment
Can be formalized in a program
Recognition is the most powerful workplace motivator – and the least expensive!
Thank you!

29. Global Implications Do motivational approaches vary by culture?
Job Characteristics/Enrichment: may not be the same in collectivist cultures
Telecommuting, variable pay, flexible benefits: while all of these seem to be on the increase, not enough research has been done to make any conclusions
Employee Involvement: important to modify practices to reflect national culture

30. Implications for Managers
Recognize and allow for individual differences
Use specific goals and feedback
Allow employees to participate in decisions that affect them
Link rewards to performance
Check the reward system for equity

31. Keep in Mind…
Most people respond to the intrinsic job characteristics of the JCM
It is not clear that employee involvement programs work – use caution!
Variable-pay plans can enhance motivation